Protecting Your Business: Understanding Commercial Storm Insurance Coverage

6/6/2023 (Permalink)

When a commercial property is hit by a storm, the damage can be devastating. From broken windows and water damage to structural damage and even total destruction, storms can wreak havoc on any business. That's why many commercial property owners invest in storm insurance to protect themselves from financial losses due to storm damage.

But what exactly does commercial storm insurance cover? In this blog, we'll break down the basics of commercial storm insurance, including what it covers and how it works.

What is commercial storm insurance?

Commercial storm insurance is a type of insurance that provides coverage for damage to commercial property caused by storms, such as hurricanes, tornadoes, and severe thunderstorms. This type of insurance can cover a variety of different types of damage, including wind damage, hail damage, water damage, and more.

What does commercial storm insurance cover?

The coverage provided by commercial storm insurance can vary depending on the policy and the specific needs of the business. However, there are a few key areas that are typically covered by this type of insurance:

• Property damage: Commercial storm insurance can cover damage to the physical structure of the property, including the roof, walls, windows, and doors. This can include damage caused by wind, hail, and other storm-related hazards.
• Business interruption: If a business is unable to operate due to storm damage, commercial storm insurance can provide coverage for lost income and other expenses related to the interruption.
• Contents coverage: Commercial storm insurance can also cover damage to the contents of the property, such as equipment, inventory, and furniture.
• Additional living expenses: If a business owner is forced to temporarily relocate due to storm damage, commercial storm insurance can provide coverage for additional living expenses, such as hotel costs and food expenses.
• Liability coverage: In some cases, commercial storm insurance can also provide liability coverage for injuries or damages caused by storm-related hazards on the property.

How does commercial storm insurance work?

When a business owner purchases commercial storm insurance, they pay a premium to the insurance company in exchange for coverage. If a storm causes damage to the property, the business owner can file a claim with their insurance company to receive compensation for the damages.

The insurance company will typically send an adjuster to the property to assess the damage and determine the amount of compensation that the business owner is entitled to. Once the claim has been processed and approved, the insurance company will provide the business owner with a check to cover the cost of repairs, lost income, or other covered expenses.

Commercial storm insurance is an important type of insurance for any business that wants to protect itself from the financial losses caused by storm damage. By providing coverage for property damage, business interruption, contents, and liability, this type of insurance can help business owners get back on their feet after a storm. If you're a commercial property owner, it's important to speak with an insurance agent to determine the right type and amount of coverage for your business.